Tax rebate for seniors may be in trouble

CARSON CITY -- The state's 13,000 low-income senior citizens probably won't see a big increase in the rebates they receive on their property taxes this year. In fact, they may see a reduction in the average $225 annual refund.

Gov. Kenny Guinn during his campaign promised to double the annual rebates, but because of the state's financial troubles he has had to scrap that plan.

A Senate-Assembly budget subcommittee Tuesday approved the governor's recommendation to spend $6 million over the next two years to keep the program going at its present level.

But, noted Assemblywoman Chris Giunchigliani, D-Las Vegas, if the growth in applications of seniors for the rebate exceeds the predicted 5.1 percent, that could mean the average grant would have to be lowered.

Don Hataway, chief deputy budget director, told the committee that the Taxation Department, which administers the fund, has the authority to move the money so that the grants will continue at their present level. He said the administration would then come back to the 2001 Legislature for a supplemental appropriation if there is not enough money to carry the program through the final months of the fiscal year.

If the Economic Forum, which meets April 29, predicts higher tax collections in the next two years than originally forecast in December, Guinn has made the increase in the senior citizens rebate his second highest priority. The first is for a pay raise for state workers.

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